Question
Comparing ending merchandise inventory, cost of goods sold, and gross profit using the periodic inventory system---FIFO, LIFO, and Weighted-Average methods Assume the Mesquite Coffee Shop
Comparing ending merchandise inventory, cost of goods sold, and gross profit using the periodic inventory system---FIFO, LIFO, and Weighted-Average methods
Assume the Mesquite Coffee Shop competed the following periodic inventory transactions for a line of merchandise inventory:
Jun. 1 | Beginning merchandise inventory | 20 units @ $20 each |
12 purchase | Purchase | 6 units @ $22 each |
20 | Sale | 14 units @ $35 each |
24 | Purchase | 16 units @ $24 each |
29 | Sale | 20 units @ $35 each |
Requirements
Compute ending merchandise inventory, cost of goods sold and gross profit using the FIFO inventory costing method
Compute ending merchandise inventory, cost of goods sold, and gross profit using the LIFO inventory costing method.
Compute ending merchandise inventory, cost of goods sold, and gross profit using the weighted-average inventory costing method. (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar.)
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